Commonwealth: Social Security and Other Legislation Amendment (Welfare Reform and Reinstatement of Racial Discrimination Act) Act 2010 (Cth)

Social Security and Other Legislation Amendment (Welfare Reform and Reinstatement of Racial Discrimination Act) Act 2010 No. 93, 2010 An Act to amend legislation relating to the Northern Territory National Emergency Response and to provide for matters relating to income management, and for related purposes Contents 1 Short title 2 Commencement 3 Schedule(s) 4 Transitional regulations Schedule 1—Repeal of laws limiting anti‑discrimination laws Families, Community Services and Indigenous Affairs and Other Legislation Amendment (Northern Territory National Emergency Response and Other Measures) Act 2007 Northern Territory National Emergency Response Act 2007 Social Security and Other Legislation Amendment (Welfare Payment Reform) Act 2007 Schedule 2—Income management regime Part 1—Relevant Northern Territory area Division 1—Amendments Social Security (Administration) Act 1999 Division 2—Saving and transitional provisions Part 2—New income management measures Social Security (Administration) Act 1999 Part 3—Voluntary income management agreements Social Security (Administration) Act 1999 Part 4—New social security payments Income Tax Assessment Act 1997 Social Security Act 1991 Social Security (Administration) Act 1999 Schedule 3—Alcohol Northern Territory National Emergency Response Act 2007 Schedule 4—Prohibited material Classification (Publications, Films and Computer Games) Act 1995 Schedule 5—Acquisition of rights, titles and interests in land Northern Territory National Emergency Response Act 2007 Schedule 6—Licensing of community stores Part 1—Amendment of Acts Northern Territory National Emergency Response Act 2007 Social Security (Administration) Act 1999 Part 2—Transitional provisions Schedule 7—Powers of Australian Crime Commission Australian Crime Commission Act 2002 Social Security and Other Legislation Amendment (Welfare Reform and Reinstatement of Racial Discrimination Act) Act 2010 No. 93, 2010 An Act to amend legislation relating to the Northern Territory National Emergency Response and to provide for matters relating to income management, and for related purposes [Assented to 29 June 2010] The Parliament of Australia enacts: 1 Short title This Act may be cited as the Social Security and Other Legislation Amendment (Welfare Reform and Reinstatement of Racial Discrimination Act) Act 2010. 2 Commencement (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms. Commencement information Column 1 Column 2 Column 3 Provision(s) Commencement Date/Details 1. Sections 1 to 4 and anything in this Act not elsewhere covered by this table The day this Act receives the Royal Assent. 29 June 2010 2. Schedule 1 The end of 31 December 2010. 31 December 2010 3. Schedule 2 1 July 2010. 1 July 2010 4. Schedule 3 1 July 2010. 1 July 2010 5. Schedule 4 1 July 2010. 1 July 2010 6. Schedule 5, items 1 and 2 1 July 2010. 1 July 2010 7. Schedule 5, items 3 and 4 A single day to be fixed by Proclamation. 29 December However, if any of the provision(s) do not commence within the period of 6 months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period. 2010 8. Schedule 5, items 5 to 7 1 July 2010. 1 July 2010 9. Schedule 6, items 1 to 49 1 July 2010. 1 July 2010 10. Schedule 6, item 50 The later of: 27 July 2010 (a) 1 July 2010; and (paragraph (b) applies) (b) the 28th day after this Act receives the Royal Assent. 11. Schedule 6, items 51 to 67 1 July 2010. 1 July 2010 12. Schedule 7 1 July 2010. 1 July 2010 Note: This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent. (2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act. 3 Schedule(s) Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms. 4 Transitional regulations The Governor‑General may make regulations prescribing matters of a transitional nature (including prescribing any saving or application provisions) relating to the amendments and repeals made by this Act. Schedule 1—Repeal of laws limiting anti‑discrimination laws Families, Community Services and Indigenous Affairs and Other Legislation Amendment (Northern Territory National Emergency Response and Other Measures) Act 2007 1 Sections 4 and 5 Repeal the sections. Northern Territory National Emergency Response Act 2007 2 Sections 132 and 133 Repeal the sections. Social Security and Other Legislation Amendment (Welfare Payment Reform) Act 2007 3 Sections 4, 5, 6 and 7 Repeal the sections. 4 Effect of repeal of sections of Acts by this Schedule To avoid doubt: (a) the repeal of sections of an Act by this Schedule does not have retrospective effect; and (b) section 8 of the Acts Interpretation Act 1901 applies to the repeal (unaffected by any contrary intention). Schedule 2—Income management regime Part 1—Relevant Northern Territory area Division 1—Amendments Social Security (Administration) Act 1999 1 Section 123TC (definition of category A welfare payment) Repeal the definition. 2 Section 123TC (definition of category B welfare payment) Repeal the definition. 3 Section 123TC (definition of category C welfare payment) Repeal the definition. 4 Section 123TC (definition of category D welfare payment) Repeal the definition. 5 Section 123TC (definition of category F welfare payment) Repeal the definition. 6 Section 123TC (definition of category G welfare payment) Repeal the definition. 7 Section 123TC (definition of declared relevant Northern Territory area) Repeal the definition. 8 Section 123TC (definition of exempt Northern Territory person) Repeal the definition. 9 Section 123TC (definition of relevant Northern Territory area) Repeal the definition. 10 Section 123TC (definition of subject to the income management regime) Omit "123UB,". 11 Sections 123TD and 123TE Repeal the sections. 12 Section 123UB Repeal the section. 13 Subdivision B of Division 2 of Part 3B Repeal the Subdivision. 14 Paragraph 123UM(5)(a) Omit "123UB,". 15 Subparagraph 123UN(1)(a)(v) Omit "123UB,". 16 Subparagraph 123UO(3)(b)(v) Omit "123UB,". 17 Paragraph 123WJ(1)(c) Omit "123UB,". 18 Paragraph 123WJ(1)(d) Omit "123UB,". 19 Subdivision A of Division 5 of Part 3B Repeal the Subdivision. 20 Subsection 123XPC(2) Omit "123UB or". 21 Section 123ZA Repeal the section. Division 2—Saving and transitional provisions 22 Definitions In this Division: Administration Act means the Social Security (Administration) Act 1999. commencement time means the time when this Part commences. transition period means the period of 12 months beginning at the commencement time. 23 Persons subject to the income management regime—relevant Northern Territory area (1) This item applies in relation to a person if the person was subject to the income management regime under section 123UB of the Administration Act immediately before the commencement time. (2) Despite the amendments and repeals made by items 1 to 7, 9 to 12 and 17, 19 and 20 of this Part and subject to subitems (3), (4), (5) and (6): (a) a determination that was in force under subsection 123TE(1) of the Administration Act immediately before the commencement time continues in force after that time in relation to the person; and (b) the person continues to be subject to the income management regime under section 123UB of the Administration Act after the commencement time; and (c) Part 3B of the Administration Act applies in relation to the person after the commencement time; as if those amendments and repeals had not happened. (3) The Minister must not make a determination under subsection 123TE(1) of the Administration Act (as it continues to apply because of subitem (2)) unless the determination relates to a relevant Northern Territory area to which a determination that was in force under that subsection after the commencement time relates. (4) Section 123UB of the Administration Act (continuing section 123UB) continues to apply in relation to the person as if paragraphs (1)(d), (f) and (g), (2)(f), (h) and (i) and (3)(a) of that section were omitted. (5) The person ceases to be subject to the income management regime under continuing section 123UB if: (a) the person ceases to meet the criteria set out in subsection (1), (2) or (3) of that section; or (b) the Secretary determines, in writing, that the person should not continue to be subject to the income management regime under that section; or (c) the person becomes subject to the income management regime under section 123UC, 123UCA, 123UCB, 123UCC, 123UD, 123UE, 123UF or 123UFA of the Administration Act, as in force after the commencement time. (6) If the person has not ceased to be subject to the income management regime under continuing section 123UB before the end of the transition period, the person ceases to be subject to the income management regime under that section at the end of that period. (7) The Secretary must not determine, under paragraph (5)(b), that the person should not continue to be subject to the income management regime under continuing section 123UB unless the person's usual place of residence is within a declared income management area (as defined in Part 3B of the Administration Act as in force after the commencement time). (8) Part 4 of the Administration Act (which deals with review of decisions) applies in relation to a decision made under paragraph (5)(b) as if it were a decision under the social security law. (9) Subsections 234(1), (2) and (7) of the Administration Act (which deal with delegation) apply in relation to the power of the Secretary under paragraph (5)(b) as if it were a power of the Secretary under the social security law. 24 Application of other laws (1) This item applies in relation to a person who is subject to the income management regime under section 123UB of the Administration Act (continuing section 123UB) as that section applies in relation to the person because of item 23 of this Part. (2) A reference in the Administration Act or any other law of the Commonwealth to Part 3B of the Administration Act has effect in relation to the person as if it were a reference to Part 3B of the Administration Act as that Part applies in relation to the person because of item 23 of this Part. (3) A reference in the Administration Act or any other law of the Commonwealth to section 123UB of the Administration Act has effect in relation to the person as if it were a reference to continuing section 123UB of that Act. Part 2—New income management measures Social Security (Administration) Act 1999 25 Section 123TA (paragraphs (a) to (f) of the dot‑point beginning with "A person may become subject to the income management regime") Repeal the paragraphs, substitute: (a) a child protection officer of a State or Territory requires the person to be subject to the income management regime; or (b) the Secretary has determined that the person is a vulnerable welfare payment recipient; or (c) the person meets the criteria relating to disengaged youth; or (d) the person meets the criteria relating to long‑term welfare payment recipients; or (e) the person, or the person's partner, has a child who does not meet school enrolment requirements; or (f) the person, or the person's partner, has a child who has unsatisfactory school attendance; or (g) the Queensland Commission requires the person to be subject to the income management regime; or (h) the person voluntarily agrees to be subject to the income management regime. 26 Section 123TA (paragraphs (b) and (c) of the dot‑point beginning with "Amounts will be debited from the person's income management account") Repeal the paragraphs, substitute: (b) the person's children (if any); and (c) the person's partner (if any); and 27 Section 123TB Repeal the section, substitute: 123TB Objects The objects of this Part are as follows: (a) to reduce immediate hardship and deprivation by ensuring that the whole or part of certain welfare payments is directed to meeting the priority needs of: (i) the recipient of the welfare payment; and (ii) the recipient's children (if any); and (iii) the recipient's partner (if any); and (iv) any other dependants of the recipient; (b) to ensure that recipients of certain welfare payments are given support in budgeting to meet priority needs; (c) to reduce the amount of certain welfare payments available to be spent on alcoholic beverages, gambling, tobacco products and pornographic material; (d) to reduce the likelihood that recipients of welfare payments will be subject to harassment and abuse in relation to their welfare payments; (e) to encourage socially responsible behaviour, including in relation to the care and education of children; (f) to improve the level of protection afforded to welfare recipients and their families. 28 Section 123TC Insert: category E welfare payment means: (a) youth allowance; or (b) newstart allowance; or (c) special benefit; or (d) pension PP (single); or (e) benefit PP (partnered). 29 Section 123TC Insert: declared income management area has the meaning given by section 123TFA. 30 Section 123TC Insert: exempt welfare payment recipient has the meaning given by section 123UGB, 123UGC or 123UGD. 31 Section 123TC Insert: full‑time student has the meaning given by section 123UGF. 32 Section 123TC Insert: school age child has the meaning given by section 123UGG. 33 Section 123TC (definition of subject to the income management regime) After "123UC,", insert "123UCA, 123UCB, 123UCC,". 34 Section 123TC Insert: vulnerable welfare payment recipient has the meaning given by section 123UGA. 35 After section 123TF Insert: 123TFA Declared income management area The Minister may, by legislative instrument, determine that: (a) a specified State; or (b) a specified Territory; or (c) a specified area; is a declared income management area for the purposes of this Part. 36 After section 123UC Insert: 123UCA Persons subject to the income management regime—vulnerable welfare payment recipients For the purposes of this Part, a person is subject to the income management regime at a particular time (the test time) if: (a) at the test time, the person is an eligible recipient of a category H welfare payment; and (b) at the test time, the person's usual place of residence is within a declared income management area; and (c) at the test time, the person is a vulnerable welfare payment recipient; and (d) if, at the test time, the person has a payment nominee—the payment nominee is not an excluded payment nominee; and (e) at the test time, the person is not subject to the income management regime under section 123UC, 123UD, 123UE or 123UF. 123UCB Persons subject to the income management regime—disengaged youth (1) For the purposes of this Part, a person is subject to the income management regime at a particular time (the test time) if: (a) at the test time, the person is an eligible recipient of a category E welfare payment; and (b) at the test time, the person is at least 15 years of age and under 25 years of age; and (c) at the test time, the person's usual place of residence is within a declared income management area; and (d) at the test time, the person is not an exempt welfare payment recipient; and (e) if, at the test time, the person has a payment nominee—the payment nominee is not an excluded payment nominee; and (f) at the test time, the person is not subject to the income management regime under section 123UC, 123UCA, 123UD, 123UE or 123UF; and (g) the person was an eligible recipient of a category E welfare payment for at least 13 weeks during the 26‑week period ending immediately before the test time. (2) For the purposes of this Part, a person is subject to the income management regime at a particular time (the test time) if: (a) at the test time, the person is not subject to the income management regime under any other provision of this Subdivision; and (b) at the test time, the person has a payment nominee; and (c) at the test time, the payment nominee is subject to the income management regime under subsection (1). 123UCC Persons subject to the income management regime—long‑term welfare payment recipients (1) For the purposes of this Part, a person is subject to the income management regime at a particular time (the test time) if: (a) at the test time, the person is an eligible recipient of a category E welfare payment; and (b) at the test time, the person is at least 25 years of age but has not reached pension age; and (c) at the test time, the person's usual place of residence is within a declared income management area; and (d) at the test time, the person is not an exempt welfare payment recipient; and (e) if, at the test time, the person has a payment nominee—the payment nominee is not an excluded payment nominee; and (f) at the test time, the person is not subject to the income management regime under section 123UC, 123UCA, 123UD, 123UE or 123UF; and (g) the person was an eligible recipient of a category E welfare payment for at least 52 weeks during the 104‑week period ending immediately before the test time. (2) For the purposes of this Part, a person is subject to the income management regime at a particular time (the test time) if: (a) at the test time, the person is not subject to the income management regime under any other provision of this Subdivision; and (b) at the test time, the person has a payment nominee; and (c) at the test time, the payment nominee is subject to the income management regime under subsection (1). 37 Before Subdivision C of Division 2 of Part 3B Insert: Subdivision BA—Additional provisions relating to vulnerable welfare payment recipients 123UGA Vulnerable welfare payment recipients Determination by Secretary (1) The Secretary may, by writing, determine that a person is a vulnerable welfare payment recipient for the purposes of this Part. (2) In making a determination under subsection (1), the Secretary must comply with any decision‑making principles set out in a legislative instrument made by the Minister for the purposes of this subsection. Duration of determination (3) A determination made under subsection (1): (a) comes into force: (i) on the day on which it is made; or (ii) if a later day is specified in the determination—on that later day; and (b) remains in force (unless earlier revoked): (i) for 12 months; or (ii) if a shorter period is specified in the determination—for that shorter period. New determinations (4) If a determination made under subsection (1) is, or has been, in force in relation to a person, subsection (3) does not prevent the Secretary from making a new determination under subsection (1) in relation to that person. Variation and revocation (5) The Secretary may, by writing, vary or revoke a determination made under subsection (1): (a) on his or her own initiative; or (b) on request made under subsection (8). (6) In deciding whether to vary or revoke a determination made under subsection (1), the Secretary must comply with any decision‑making principles set out in an instrument made for the purposes of subsection (2). (7) Subsection (5) does not limit the application of subsection 33(3) of the Acts Interpretation Act 1901 to other instruments under this Act. Request to reconsider circumstances (8) Subject to subsection (9), if a determination made under subsection (1) is in force in relation to a person, the person may request the Secretary to: (a) reconsider the person's circumstances; and (b) vary, or revoke, the determination. (9) A person must not make a request under subsection (8) in relation to a determination if, at any time during the preceding period of 90 days, the person has made a request under that subsection in relation to the same determination. (10) If a person makes a request under subsection (8), the Secretary must reconsider the person's circumstances unless the request was made in contravention of subsection (9). Determination not a legislative instrument (11) A determination made under subsection (1) is not a legislative instrument. Subdivision BB—Additional provisions relating to disengaged youth and long‑term welfare payment recipients 123UGB Exempt welfare payment recipient—inclusion in specified class (1) The Secretary may, by writing, determine that a person is an exempt welfare payment recipient if the Secretary is satisfied that the person is included in a class of persons specified in an instrument made by the Minister under subsection (2). (2) The Minister may, by legislative instrument, specify a class of persons to be exempt welfare payment recipients for the purposes of this section. (3) A determination made by the Secretary under subsection (1) is not a legislative instrument. 123UGC Exempt welfare payment recipient—persons without dependent children (1) The Secretary may, by writing, determine that a person is an exempt welfare payment recipient at a particular time (the test time) if: (a) the person has no dependent children at the test time; and (b) the Secretary is satisfied that one of the following applies: (i) the person is a full‑time student or a new apprentice at the test time; (ii) during the 12‑month period ending immediately before the test time, the person worked for at least 15 hours per week for at least 26 weeks on wages that were at or above the relevant minimum wage; (iii) at the test time, the person is undertaking an activity specified in an instrument made by the Minister under subsection (2). Note: A child can be a dependent child of only one person at a time: see section 123UGE. (2) The Minister may, by legislative instrument, specify activities for the purpose of subparagraph (1)(b)(iii). The activities may be specified by reference to a class of persons undertaking the activities. (3) A determination made by the Secretary under subsection (1) is not a legislative instrument. (4) In this section: dependent child means a dependent child who is a school age child or younger. Note: For dependent child, see section 5 of the 1991 Act. 123UGD Exempt welfare payment recipient—persons with dependent children (1) The Secretary may, by writing, determine that a person is an exempt welfare payment recipient at a particular time (the test time) if: (a) the person has one or more dependent children at the test time; and (b) in relation to each dependent child who is a school age child—the Secretary is satisfied that: (i) at the test time, the child is enrolled at a school, and the child has had no more than 5 unexplained absences in each of the 2 school terms ending immediately before that time; or (ii) at the test time, the child is covered by a schooling arrangement that is acceptable under a law of a State or Territory as an alternative to a requirement under that law to enrol at, or attend, a school (for example, the child is home‑schooled), and the child's schooling is progressing satisfactorily; or (iii) at the test time, the child is participating in an activity specified in an instrument made by the Minister under subsection (2); and (c) in relation to each other dependent child—the Secretary is satisfied that, at the test time, the person or the child is participating in the required number and kind of activities specified in an instrument made by the Minister under subsection (3); and (d) the Secretary is satisfied that there were no indications of financial vulnerability in relation to the person during the 12‑month period ending immediately before the test time. Note 1: A child can be a dependent child of only one person at a time: see section 123UGE. Note 2: In deciding whether he or she is satisfied as mentioned in paragraph (1)(d), the Secretary must comply with decision‑making principles: see subsection (5). Alternative activities for school age children (2) The Minister may, by legislative instrument, specify activities for the purpose of subparagraph (1)(b)(iii). Activities relating to dependent children (other than school age children) (3) The Minister must, by legislative instrument, specify the number and kind of activities that a person, or the person's dependent child (other than a school age child), may participate in for the purposes of paragraph (1)(c). (4) The activities that may be specified under subsection (3) may relate to a child's intellectual, physical or social development. Decision‑making principles relating to financial vulnerability (5) In deciding whether he or she is satisfied as mentioned in paragraph (1)(d), the Secretary must comply with any decision‑making principles set out in a legislative instrument made by the Minister for the purposes of this subsection. Determination not a legislative instrument (6) A determination made by the Secretary under subsection (1) is not a legislative instrument. Definition (7) In this section: dependent child has the same meaning as in section 123UGC. 123UGE Child can be dependent child of only one person at a time (1) For the purposes of sections 123UGC and 123UGD, a child can be a dependent child of only one person at a time. (2) If the Secretary is satisfied that, but for subsection (1), a child would be a dependent child of 2 or more persons, the Secretary must determine in relation to which of those persons the child is a dependent child. 123UGF Full‑time student A person is a full‑time student for the purposes of this Part if the person: (a) is an eligible recipient of youth allowance; and (b) is undertaking full‑time study (as defined by section 541B of the 1991 Act). 123UGG School age child (1) For the purposes of this Part, a child is a school age child if the child is required, under a law of a State or Territory: (a) to be enrolled at a school; or (b) to attend a school at times required under that law. (2) For the purposes of this section: attendance, at a school, includes attendance at a place, for the purpose of schooling, that is acceptable under a law of a State or Territory as an alternative to a requirement under that law to attend a school. enrolment, at a school, includes anything, for the purposes of schooling, that is acceptable under a law of a State or Territory as an alternative to a requirement under that law to enrol at a school. 38 Paragraph 123UM(5)(a) After "123UC,", insert "123UCA, 123UCB, 123UCC,". 39 Subparagraph 123UN(1)(a)(v) After "123UC,", insert "123UCA, 123UCB, 123UCC,". 40 Subparagraph 123UO(3)(b)(v) After "123UC,", insert "123UCA, 123UCB, 123UCC,". 41 Paragraphs 123WJ(1)(c) and (d) After "123UC,", insert "123UCA, 123UCB, 123UCC,". 42 After Subdivision B of Division 5 of Part 3B Insert: Subdivision BA—Vulnerable welfare payment recipients 123XJA Deductions from category I welfare payments—instalments Scope (1) This section applies if: (a) a person is subject to the income management regime under section 123UCA; and (b) an instalment of category I welfare payment is payable to the person. Deductions from category I welfare payments—instalments (2) The following provisions have effect: (a) the Secretary must deduct from the instalment of the category I welfare payment the deductible portion of the instalment; (b) an amount equal to the deductible portion of the instalment is credited to the Special Account; (c) an amount equal to the deductible portion of the instalment is credited to the person's income management account. Deductible portion—instalments of baby bonus (3) For the purposes of subsection (2), the deductible portion of an instalment of baby bonus under the Family Assistance Act is: (a) 100%; or (b) if a lower percentage is specified in a legislative instrument made by the Minister for the purposes of this paragraph—the lower percentage; of the net amount of the instalment (rounded down to the nearest cent). Deductible portion—instalments of other category I welfare payments (4) For the purposes of subsection (2), the deductible portion of an instalment of a category I welfare payment (other than baby bonus under the Family Assistance Act) is: (a) 50%; or (b) if another percentage (not exceeding 100%) is specified in a legislative instrument made by the Minister for the purposes of this paragraph—the other percentage; of the net amount of the instalment (rounded down to the nearest cent). (5) An instrument under paragraph (4)(b) may specify different percentages in relation to different category I welfare payments. (6) An instrument under paragraph (4)(b) may specify a percentage that is higher than 50% only if the Minister considers the higher percentage is necessary to promote the objects of this Part. 123XJB Deductions from category I welfare payments—lump sums Scope (1) This section applies if: (a) a person is subject to the income management regime under section 123UCA; and (b) a category I welfare payment is payable to the person otherwise than by instalments. Deductions from category I welfare payments—lump sums (2) The following provisions have effect: (a) the Secretary must deduct from the category I welfare payment the deductible portion of the payment; (b) an amount equal to the deductible portion of the payment is credited to the Special Account; (c) an amount equal to the deductible portion of the payment is credited to the person's income management account. Deductible portion (3) For the purposes of subsection (2), the deductible portion of a category I welfare payment is: (a) 100%; or (b) if a lower percentage is specified in a legislative instrument made by the Minister for the purposes of this paragraph—the lower percentage; of the net amount of the instalment (rounded down to the nearest cent). (4) An instrument under paragraph (3)(b) may specify different percentages in relation to different category I welfare payments. Subdivision BB—Disengaged youth and long‑term welfare payment recipients 123XJC Deductions from category I welfare payments—instalments Scope (1) This section applies if: (a) a person is subject to the income management regime under section 123UCB or 123UCC; and (b) an instalment of category I welfare payment is payable to the person. Deductions from category I welfare payments—instalments (2) The following provisions have effect: (a) the Secretary must deduct from the instalment of the category I welfare payment the deductible portion of the instalment; (b) an amount equal to the deductible portion of the instalment is credited to the Special Account; (c) an amount equal to the deductible portion of the instalment is credited to the person's income management account. Deductible portion—instalments of baby bonus (3) For the purposes of subsection (2), the deductible portion of an instalment of baby bonus under the Family Assistance Act is: (a) 100%; or (b) if a lower percentage is specified in a legislative instrument made by the Minister for the purposes of this paragraph—the lower percentage; of the net amount of the instalment (rounded down to the nearest cent). Deductible portion—instalments of other category I welfare payments (4) For the purposes of subsection (2), the deductible portion of an instalment of a category I welfare payment (other than baby bonus under the Family Assistance Act) is: (a) 50%; or (b) if another percentage (not exceeding 100%) is specified in a legislative instrument made by the Minister for the purposes of this paragraph—the other percentage; of the net amount of the instalment (rounded down to the nearest cent). (5) An instrument under paragraph (4)(b) may specify different percentages in relation to different category I welfare payments. (6) An instrument under paragraph (4)(b) may specify a percentage that is higher than 50% only if the Minister considers the higher percentage is necessary to promote the objects of this Part. 123XJD Deductions from category I welfare payments—lump sums Scope (1) This section applies if: (a) a person is subject to the income management regime under section 123UCB or 123UCC; and (b) a category I welfare payment is payable to the person otherwise than by instalments. Deductions from category I welfare payments—lump sums (2) The following provisions have effect: (a) the Secretary must deduct from the category I welfare payment the deductible portion of the payment; (b) an amount equal to the deductible portion of the payment is credited to the Special Account; (c) an amount equal to the deductible portion of the payment is credited to the person's income management account. Deductible portion (3) For the purposes of subsection (2), the deductible portion of a category I welfare payment is: (a) 100%; or (b) if a lower percentage is specified in a legislative instrument made by the Minister for the purposes of this paragraph—the lower percentage; of the net amount of the instalment (rounded down to the nearest cent). (4) An instrument under paragraph (3)(b) may specify different percentages in relation to different category I welfare payments. 43 Paragraphs 123YA(2)(b) and (c) Repeal the paragraphs, substitute: (b) the first person's children (if any); or (c) the first person's partner (if any); or 44 Subparagraphs 123YA(3)(a)(ii) and (iii) Repeal the subparagraphs, substitute: (ii) the first person's children (if any); and (iii) the first person's partner (if any); and 45 Subparagraphs 123YQ(5)(a)(ii) and (iii) Repeal the subparagraphs, substitute: (ii) the first person's children (if any); (iii) the first person's partner (if any); Part 3—Voluntary income management agreements Social Security (Administration) Act 1999 46 Paragraph 123UM(5)(b) Omit "2 or more", substitute "4". 47 Paragraph 123UN(1)(b) Repeal the paragraph, substitute: (b) remains in force until: (i) it is terminated under section 123UO; or (ii) if the agreement specifies a period (which must be at least 13 weeks) during which it is to remain in force, and the agreement has not been terminated under section 123UO before the end of that period—the end of that period. 48 Subsection 123UN(2) Repeal the subsection. 49 After subsection 123UO(1) Insert: (1A) However, a person must not make a request under subsection (1) unless the voluntary income management agreement to which the request relates has been in force for at least 13 weeks. 50 At the end of subsection 123UO(2) Add ", unless the request relates to a voluntary income management agreement that, on the day the request is received, has not been in force for at least 13 weeks". 51 Application of items 47 to 50 The amendments made by items 47 to 50 of this Part apply in relation to a voluntary income management agreement that is entered into after the commencement of this Part. 52 Subsection 123UO(4) Omit "60 days", substitute "21 days". 53 Application of item 52 The amendment made by item 52 of this Part applies in relation to a person if a voluntary income management agreement relating to the person is terminated under section 123UO of the Social Security (Administration) Act 1999 after the commencement of this Part (whether the agreement was entered into before or after that commencement). Part 4—New social security payments Income Tax Assessment Act 1997 54 Section 11‑15 (table item headed "social security or like payments") After: lump sum payment under section 198N of the Veterans' Entitlements Act 1986 52‑65 insert: matched savings scheme (income management) payment under the Social Security Act 1991 52‑10 55 Section 11‑15 (table item headed "social security or like payments") After: veteran, payment to ......................... Subdivisions 52‑B and 52‑C insert: voluntary income management incentive payment under the Social Security Act 1991 52‑10 56 After paragraph 52‑10(1)(w) Insert: (wa) payments under the Social Security Act 1991 referred to in subsection (1EA); or 57 After subsection 52‑10(1E) Insert: (1EA) The following payments under the Social Security Act 1991 are exempt from income tax: (a) voluntary income management incentive payment (see Part 2.25D of that Act); (b) matched savings scheme (income management) payment (see Part 2.25E of that Act). Social Security Act 1991 58 Subsection 23(1) Insert: matched savings scheme (income management) payment means a matched savings scheme (income management) payment under Part 2.25E. 59 Subsection 23(1) Insert: voluntary income management agreement has the meaning given by Part 3B of the Administration Act. 60 Subsection 23(1) Insert: voluntary income management incentive payment means a voluntary income management incentive payment under Part 2.25D. 61 After Part 2.25C Insert: Part 2.25D—Voluntary income management incentive payment 1061W Qualification for a voluntary income management incentive payment (1) A person is qualified for a voluntary income management incentive payment if the person has accrued a qualifying incentive payment period. (2) A person accrues a qualifying incentive payment period if a voluntary income management agreement relating to the person has been in force for a period of 26 consecutive weeks. (3) A person may accrue more than one qualifying incentive payment period. However, a week during which a voluntary income management agreement relating to the person is in force cannot be counted towards more than one qualifying incentive payment period. 1061WA When a voluntary income management incentive payment is payable A voluntary income management incentive payment is payable to a person in relation to each qualifying incentive payment period accrued by the person. 1061WB Amount of a voluntary income management incentive payment The amount of a voluntary income management incentive payment is $250. Part 2.25E—Matched savings scheme (income management) payment 1061WG Qualification for matched savings scheme (income management) payment (1) A person is qualified for a matched savings scheme (income management) payment if: (a) the person has completed an approved course; and (b) the Secretary is satisfied that: (i) the person has maintained a pattern of regular savings throughout a period (the qualifying savings period) of at least 13 consecutive weeks beginning after the person commenced the approved course; and (ii) the person has a qualifying savings amount; and (c) the person is subject to the income management regime under section 123UC, 123UCA, 123UCB, 123UCC, 123UD or 123UE of the Administration Act, and was subject to the income management regime under one of those sections throughout the qualifying savings period. (2) For the purposes of paragraph (1)(a), a course is an approved course if it is a course approved by the Secretary, by legislative instrument, for the purposes of this subsection. (3) In deciding whether he or she is satisfied as mentioned in paragraph (1)(b), the Secretary must comply with any decision‑making principles set out in a legislative instrument made by the Minister for the purposes of this subsection. (4) A person has a qualifying savings amount if the amount (the second amount) of the person's savings at the end of the qualifying savings period is greater than the amount (if any) (the first amount) of the person's savings at the beginning of that period. The difference between the second amount and the first amount is the person's qualifying savings amount. (5) For the purposes of subsection (4), a person's qualifying savings amount does not include any amount credited to the person's income management account (within the meaning of Part 3B of the Administration Act) during the qualifying savings period. 1061WH Amount of a matched savings scheme (income management) payment (1) The amount of a matched savings scheme (income management) payment payable to a person is: (a) the person's qualifying savings amount (as defined by section 1061WG); or (b) if the person's qualifying savings amount is more than $500—$500. (2) A matched savings scheme (income management) payment is to be paid as a single lump sum. (3) A person may receive one matched savings scheme (income management) payment under this Part, regardless of how many times the person qualifies for the payment. Social Security (Administration) Act 1999 62 Before section 13 Insert: 12J Voluntary income management incentive payment A claim is not required for a voluntary income management incentive payment. 63 Subsection 47(1) (after paragraph (f) of the definition of lump sum benefit) Insert: (fa) voluntary income management incentive payment; or (fb) matched savings scheme (income management) payment; or 64 Before Subdivision E of Division 5 of Part 3B Insert: Subdivision DD—Voluntary income management incentive payments and matched savings scheme (income management) payments 123XPH Deductions from voluntary income management incentive payments Scope (1) This section applies if: (a) a person is subject to the income management regime; and (b) a voluntary income management incentive payment is payable to the person. Deductions from payments (2) The following provisions have effect: (a) the Secretary must deduct from the voluntary income management incentive payment the deductible portion of the payment; (b) an amount equal to the deductible portion of the payment is credited to the Special Account; (c) an amount equal to the deductible portion of the payment is credited to the person's income management account. Deductible portion (3) For the purposes of subsection (2), the deductible portion of a voluntary income management incentive payment is 100% of the amount of the payment. 123XPI Deductions from matched savings scheme (income management) payments Scope (1) This section applies if: (a) a person is subject to the income management regime; and (b) a matched savings scheme (income management) payment is payable to the person. Deductions from payments (2) The following provisions have effect: (a) the Secretary must deduct from the matched savings scheme (income management) payment the deductible portion of the payment; (b) an amount equal to the deductible portion of the payment is credited to the Special Account; (c) an amount equal to the deductible portion of the payment is credited to the person's income management account. Deductible portion (3) For the purposes of subsection (2), the deductible portion of the matched savings scheme (income management) payment is 100% of the amount of the payment. 65 Application (1) Part 2.25D of the Social Security Act 1991 (as inserted by item 61 of this Part) applies in relation to a qualifying incentive payment period that commences after the commencement of this Part. (2) Part 2.25E of the Social Security Act 1991 (as inserted by item 61 of this Part) applies in relation to a qualifying savings period that commences after the commencement of this Part. Schedule 3—Alcohol Northern Territory National Emergency Response Act 2007 1 Before section 7 Insert: 6A Object of Part The object of this Part is to enable special measures to be taken to reduce alcohol‑related harm in Indigenous communities in the Northern Territory. 2 Subsection 11(1) Omit "must, if it is practicable to do so, take all such steps as are, in its opinion, necessary to", substitute "may". 3 Paragraph 11(1)(d) Repeal the paragraph, substitute: (d) setting out any other information that the Commission considers appropriate. 4 Subsection 11(2) Omit "must also", substitute "may". 5 Paragraph 11(2)(c) Repeal the paragraph, substitute: (c) setting out any other information that the Commission considers appropriate. 6 Subsection 11(3) Repeal the subsection, substitute: (3) The Commission may, before exercising a power under subsection (1) or (2), consult people living in the prescribed area on the content of the notice. 7 Subsection 12(10) Omit "must, if it is practicable to do so, take all such steps as are, in its opinion, necessary to", substitute "may". 8 Subsection 12(11) Omit "must also", substitute "may". 9 Subsection 12(12) Repeal the subsection. 10 Section 18 Repeal the section, substitute: 18 Application of Police Administration Act (1) The Commonwealth Minister may, by legislative instrument, declare that Division 4 of Part VII of the Police Administration Act applies to a specified prescribed area or a specified part of a prescribed area as if the area or part were a public place. Note: The reference to the Police Administration Act of the Northern Territory is to be construed as a reference to that Act as originally enacted and as amended from time to time: see section 10A of the Acts Interpretation Act 1901 of the Commonwealth. (2) The Commonwealth Minister must not make a declaration under subsection (1) in relation to a prescribed area or a part of a prescribed area unless a request is made to the Commonwealth Minister to do so by, or on behalf of, a person who is ordinarily resident in the prescribed area or in the part of the prescribed area. Community consultation (3) Before making a declaration under subsection (1) in relation to a prescribed area or a part of a prescribed area, the Commonwealth Minister must ensure that: (a) information setting out: (i) the proposal to make the declaration; and (ii) an explanation, in summary form, of the consequences of the making of the declaration; has been made available in the prescribed area or the part of the prescribed area; and (b) people in the prescribed area or the part of the prescribed area have been given a reasonable opportunity to discuss: (i) the proposal to make the declaration; and (ii) the consequences of the making of the declaration; and (iii) their circumstances, concerns and views, so far as they relate to the proposal; with employees of the Commonwealth or such other persons as the Commonwealth Minister thinks appropriate. (4) A failure to comply with subsection (3) does not affect the validity of a declaration under subsection (1). Criteria for making a declaration (5) In making a declaration under subsection (1) in relation to a prescribed area or a part of a prescribed area, the Commonwealth Minister must have regard to the following matters: (a) the well‑being of people living in the prescribed area or the part of the prescribed area; (b) whether there is reason to believe that people living in the prescribed area or the part of the prescribed area have been the victims of alcohol‑related harm during a period the Commonwealth Minister considers appropriate; (c) the extent to which people living in the prescribed area or the part of the prescribed area have, during a period the Commonwealth Minister considers appropriate, expressed their concerns about being at risk of alcohol‑related harm; (d) the extent to which people living in the prescribed area or the part of the prescribed area have, during a period the Commonwealth Minister considers appropriate, expressed the view that their well‑being will be improved if Division 4 of Part VII of the Police Administration Act applies in relation to the prescribed area or the part of the prescribed area in accordance with this section; (e) whether there is an alcohol management plan in relation to a community or communities in the prescribed area or the part of the prescribed area; (f) any discussions of the kind referred to in paragraph (3)(b); (g) any other matter that the Commonwealth Minister considers relevant. 11 At the end of section 19 Add: (3) The Commonwealth Minister may make a declaration under paragraph (1)(b) in relation to a prescribed area or a part of a prescribed area: (a) on the Commonwealth Minister's own initiative; or (b) following a request made to the Commonwealth Minister by, or on behalf of, a person who is ordinarily resident in the prescribed area or in the part of the prescribed area. (4) If the Commonwealth Minister makes a declaration under paragraph (1)(b) in relation to a prescribed area or a part of a prescribed area, this Division continues to apply, or the specified provisions of this Division continue to apply, in relation to that area or part after the declaration takes effect in relation to things done, or omitted to be done, before the declaration takes effect. Community consultation (5) Before making a declaration under paragraph (1)(b) in relation to a prescribed area or a part of a prescribed area, the Commonwealth Minister must ensure that: (a) information setting out: (i) the proposal to make the declaration; and (ii) an explanation, in summary form, of the consequences of the making of the declaration; has been made available in the prescribed area or the part of the prescribed area; and (b) people in the prescribed area or the part of the prescribed area have been given a reasonable opportunity to discuss: (i) the proposal to make the declaration; and (ii) the consequences of the making of the declaration; and (iii) their circumstances, concerns and views, so far as they relate to the proposal; with employees of the Commonwealth or such other persons as the Commonwealth Minister thinks appropriate. (6) A failure to comply with subsection (5) does not affect the validity of a declaration under paragraph (1)(b). Criteria for making a declaration (7) In making a declaration under paragraph (1)(b) in relation to a prescribed area or a part of a prescribed area, the Commonwealth Minister must have regard to the following matters: (a) the well‑being of people living in the prescribed area or the part of the prescribed area; (b) whether there is reason to believe that people living in the prescribed area or the part of the prescribed area have been the victims of alcohol‑related harm during a period the Commonwealth Minister considers appropriate; (c) the extent to which people living in the prescribed area or the part of the prescribed area have, during a period the Commonwealth Minister considers appropriate, expressed their concerns about being at risk of alcohol‑related harm; (d) the extent to which people living in the prescribed area or the part of the prescribed area have, during a period the Commonwealth Minister considers appropriate, expressed the view that their well‑being will be improved if this Division continues to apply, or particular provisions of this Division continue to apply, in relation to the prescribed area or the part of the prescribed area; (e) whether there is an alcohol management plan in relation to a community or communities in the prescribed area or the part of the prescribed area; (f) any discussions of the kind referred to in paragraph (5)(b); (g) any other matter that the Commonwealth Minister considers relevant. 12 At the end of Division 2 of Part 2 Add: 19A Reapplication of the provisions of this Division (1) The Commonwealth Minister may, by legislative instrument, revoke a declaration made under paragraph 19(1)(b) in relation to a prescribed area or a part of a prescribed area. (2) At and after the time the instrument made under subsection (1) takes effect: (a) subject to paragraph (b), this Division again has effect, or the provisions of this Division specified in the declaration referred to in subsection (1) again have effect, in relation to the prescribed area or the part of the prescribed area; or (b) if, in the instrument made under subsection (1), the Commonwealth Minister declares that specified provisions of this Division again have effect in relation to the prescribed area or the part of the prescribed area—only those provisions again have effect in relation to the prescribed area or the part of the prescribed area. (3) The Commonwealth Minister may make a legislative instrument under this section: (a) on the Commonwealth Minister's own initiative; or (b) following a request made to the Commonwealth Minister by, or on behalf of, a person who is ordinarily resident in the prescribed area or in the part of the prescribed area. Community consultation (4) Before making a legislative instrument under this section, the Commonwealth Minister must ensure that: (a) information setting out: (i) the proposal to make the instrument; and (ii) an explanation, in summary form, of the consequences of the making of the instrument; has been made available in the prescribed area or the part of the prescribed area; and (b) people in the prescribed area or the part of the prescribed area have been given a reasonable opportunity to discuss: (i) the proposal to make the instrument; and (ii) the consequences of the making of the instrument; and (iii) their circumstances, concerns and views, so far as they relate to the instrument; with employees of the Commonwealth or such other persons as the Commonwealth Minister thinks appropriate. (5) A failure to comply with subsection (4) does not affect the validity of a legislative instrument under this section. Criteria for making legislative instrument (6) In making a legislative instrument under this section, the Commonwealth Minister must have regard to the following matters: (a) the well‑being of people living in the prescribed area or the part of the prescribed area; (b) whether there is reason to believe that people living in the prescribed area or the part of the prescribed area have been the victims of alcohol‑related harm during a period the Commonwealth Minister considers appropriate; (c) the extent to which people living in the prescribed area or the part of the prescribed area have, during a period the Commonwealth Minister considers appropriate, expressed their concerns about being at risk of alcohol‑related harm; (d) the extent to which people living in the prescribed area or the part of the prescribed area have, during a period the Commonwealth Minister considers appropriate, expressed the view that their well‑being will be improved if this Division applies, or particular provisions of this Division apply, in relation to the prescribed area or the part of the prescribed area; (e) whether there is an alcohol management plan in relation to a community or communities in the prescribed area or the part of the prescribed area; (f) any discussions of the kind referred to in paragraph (4)(b); (g) any other matter that the Commonwealth Minister considers relevant. 13 Division 3A of Part 2 Repeal the Division. Schedule 4—Prohibited material Classification (Publications, Films and Computer Games) Act 1995 1 Before section 99 Insert: 98A Main object of Part The main object of this Part is to enable special measures to be taken to protect children living in Indigenous communities in the Northern Territory from being exposed to prohibited material. 2 Section 99 Insert: child means a person who is under 18 years of age. 3 Section 99 Insert: Indigenous Affairs Minister means the Minister administering the Aboriginal Land Rights (Northern Territory) Act 1976. 4 Section 99 Insert: Indigenous Affairs Secretary means the Secretary of the Department administered by the Minister who administers the Aboriginal Land Rights (Northern Territory) Act 1976. 5 At the end of Division 1 of Part 10 Add: 100A Declarations by Indigenous Affairs Minister (1) The Indigenous Affairs Minister may, by legislative instrument, declare that this Part ceases to have effect in relation to a specified prescribed area or a specified part of a prescribed area. (2) The Indigenous Affairs Minister must not make a declaration under subsection (1) in relation to a prescribed area or a part of a prescribed area unless a request is made to the Indigenous Affairs Minister to do so by, or on behalf of, a person who is ordinarily resident in the prescribed area or in the part of the prescribed area. (3) If the Indigenous Affairs Minister makes a declaration under subsection (1) in relation to a prescribed area or a part of a prescribed area, this Part continues to apply in relation to that area or part after the declaration takes effect in relation to things done, or omitted to be done, before the declaration takes effect. Community consultation (4) Before making a declaration under subsection (1) in relation to a prescribed area or a part of a prescribed area, the Indigenous Affairs Minister must ensure that: (a) information setting out: (i) the proposal to make the declaration; and (ii) an explanation, in summary form, of the consequences of the making of the declaration; has been made available in the prescribed area or the part of the prescribed area; and (b) people in the prescribed area or the part of the prescribed area have been given a reasonable opportunity to discuss: (i) the proposal to make the declaration; and (ii) the consequences of the making of the declaration; and (iii) their circumstances, concerns and views, so far as they relate to the proposal; with employees of the Commonwealth or such other persons as the Indigenous Affairs Minister thinks appropriate. (5) A failure to comply with subsection (4) does not affect the validity of a declaration under subsection (1). Criteria for making a declaration (6) In making a declaration under subsection (1) in relation to a prescribed area or a part of a prescribed area, the Indigenous Affairs Minister must have regard to the following matters: (a) the well‑being of people living in the prescribed area or the part of the prescribed area; (b) whether there is reason to believe that people living in the prescribed area or the part of the prescribed area have been the victims of violence or sexual abuse during a period the Indigenous Affairs Minister considers appropriate; (c) the extent to which people living in the prescribed area or the part of the prescribed area have, during a period the Indigenous Affairs Minister considers appropriate, expressed their concerns about being at risk of violence or sexual abuse; (d) whether there is reason to believe that children living in the prescribed area or the part of the prescribed area have been exposed to prohibited material during a period the Indigenous Affairs Minister considers appropriate; (e) the extent to which people living in the prescribed area or the part of the prescribed area have, during a period the Indigenous Affairs Minister considers appropriate, expressed the view that their well‑being will be improved if this Part continues to apply in relation to the prescribed area or the part of the prescribed area; (f) any discussions of the kind referred to in paragraph (4)(b); (g) the views of relevant law enforcement authorities; (h) any other matter that the Indigenous Affairs Minister considers relevant. 100B Reapplication of this Part (1) The Indigenous Affairs Minister may, by legislative instrument, revoke a declaration made under subsection 100A(1) in relation to a prescribed area or a part of a prescribed area. (2) At and after the time the revocation takes effect, this Part again has effect in relation to the prescribed area or the part of the prescribed area. (3) The Indigenous Affairs Minister may make a revocation under subsection (1): (a) on the Indigenous Affairs Minister's own initiative; or (b) following a request made to the Indigenous Affairs Minister by, or on behalf of, a person who is ordinarily resident in the prescribed area or in the part of the prescribed area. Community consultation (4) Before making a revocation under subsection (1), the Indigenous Affairs Minister must ensure that: (a) information setting out: (i) the proposal to make the revocation; and (ii) an explanation, in summary form, of the consequences of the making of the revocation; has been made available in the prescribed area or the part of the prescribed area; and (b) people in the prescribed area or the part of the prescribed area have been given a reasonable opportunity to discuss: (i) the proposal to make the revocation; and (ii) the consequences of the making of the revocation; and (iii) their circumstances, concerns and views, so far as they relate to the proposal; with employees of the Commonwealth or such other persons as the Ind